HVAC Side Work
My guys get ask alot about side work so I decided to help them out and protect them with a contract. I told them if anyone wants to sign it they can do the work. If not, run.
Contract for Side Work
1. While most people are aware they must include wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many don’t realize that they must also report most other income, such as: cash earned from side jobs, or barter exchanges of goods or services. Therefore I will be including this work on my taxes and will need to have you sign a voucher.
2. As a self-employed person, I am responsible for both the employer's and the employee's portion of FICA--the Social Security and Medicare taxes. On my paycheck at work, I pay 7.65% in FICA taxes, and my employer pays the other 7.65%. As a self-employed person, I pay the full 15.3%. On the Form 1040, this is called the Self-Employment Tax. Therefore you need to pay this as well.
3. I will need a copy of your homeowner’s policy. I need to insure that if I make a mistake and the house burns down, floods or other damage occurs your insurance is on the line and will pay for it. My boss covers this in his but I don’t have any.
4. If I am injured, your home owners insurance will sometimes pick up and cover the loss, but then your premiums go up. However, if your home owners insurance does not cover the costs of my injuries you’re on the hook for the entire amount. That will include both hospital and recovery wages. My boss pays a lot for this insurance which is the major reason he charges a bit more.
5. I need my main job so I will put my boss first. If he needs me I will be working for him and you will be in second place. I may not be able to finish the job as quickly as you like due to this.
6. My vehicle insurance does not cover “side work” if I am in an accident while working for you I will need for you to replace my vehicle and cover any medical and recovery wages.
7. All my time on this job also covers me running back and forth to the parts or supply house. Usually I have this on stuff on my work van so I don’t have to. You will be responsible for my time and gas.
8. As a professional I will ensure that we follow all applicable codes. I will be notifying the appropriate code enforcement officer to inspect the work I do. Therefore you will need to pull the permit or I will to cover my license. You will need to pay for this as well.
Thank you for offering me the “side work”. When would you like me to start?
I don't know why ANY homeowner would sign that.
Would YOU present that to YOUR customers?
Doing side work here and doing it LEGALLY is not that expensive or complicated.
I would not sign it. I would want a reputable contractor who has his own insurance, license, and gave me a rock solid bid. I would want them to pull the permit and accomplish the job in the specified time. I would require a warranty from them and a 24 hour emergency response.
I am happy though that you are willing and able to do it without such encumbrances.
I don't believe most, if any homeowners would sign that either. The only side work requests either my coworkers or I've gotten are the constant people looking for jobs done on the cheap and have a fit when you tell them no.
I think that is some pretty good tongue and cheek. I would print this off and hand it to your side work guys so they would understand the consequences of doing side work. But I would not give it to a customer ever unless he asked me to do side work and I wasn't interested. Will wake up the HO as well.... Good one!
Technical incompetence is NOT a sales tool....
Related story, but this one is TRUE.......I have some relation in the insurance business. Their company paid a claim on a roof replacment and the homeowner hired her brother in law to replace roof. He was moonlighting. Short story is that he fell from the roof and landed on the downed tree which had damaged the roof. Breaking his neck and back. He had no workman's comp. insurance so he sued his sister in law's insurance company for his injuries. The insurance company who ORIGINALLY PAID THE CLAIM ended up paying for the brother in law's broken neck and back!!! The claim ended up in a court hearing, but went to the brother in law when he showed up in a wheelchair paralized from waist up. Really sad, but true. The truly HUGE mistake was made by the insurance company not requiring the homeowner to hire a licensed and insured contractor instead of her brother in law.
Because buying your own insurance, getting your own license, and using your own truck is too complicated for us lowly service tech scum right?
10mm, because it's better than .45acp
I would venture to say that less than five percent of guys who do side work have all of the required coverages. The document above clearly illustrates the perils of doing work on the side. but for those who still want to do it, great, but either get the coverages, or use the contract above. This should be sent to every supply house in the country for their distribution.
around here that contract would not be legal anyway. you either work for a liscensed contractor or be a licensed contractor. as far as pulling permits.
I dont think it was meant to be an actual contract, but rather a well written, plain language document intended to make some guys aware of potential problems with moonlighting. the risk/reward scenario isnt in favor of doing side work.
Originally Posted by John Markl
Waiting for EXPERIENCE John. I belive I have told you that before.
I don't think that he meant the contract to be an insult to the service techs, but an attempt to show how much extra goes into maintaining a company. Hence the additional amount that is required to do the job through the proper means. The overhead required justifies the fact that the hourly rate that companies charge is more than the hourly wage paid to the technicians.
Originally Posted by zw17